...Economics of Daily Life Economics of Daily Life Economics is a study of how society manages its scarce resources. The literal translation for economy is “one who manages a household.” “In an increasingly complex world connected by social and economic interaction and interdependence, news of stock market fluctuations, consumer confidence scores, and various economic indicators fill the media” (Broome & Preston-Grimes, 2011). This means that economics is everywhere, even in a home. Every household makes decisions that follow the economic principles. There are tradeoffs, and incentives. Supply and demand regularly show up in a household setting, as do decisions regarding limits on price and time. I am a single mom and the science of economics is a daily occurrence, at the grocery store, while doing homework, and in my choice of home and bills. Economics is an inevitable part of most people’s daily lives. It occurs in every facet of home, work, and school. There are ten principles to economics. They are the decisions that need to be made in regards to the jobs that need to be done, and the management of the resources that will allow the necessities to be provided. One of the principles that occur most in my daily life is tradeoffs. Tradeoffs occur when a person has to choose between one thing and another, forgoing one desirable option, for the more beneficial, sometimes undesired option. In a study done in 2011, a Montessori middle school set up a school store. Some...
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...Ch. 1 We Have a global economy. Econimics-the study of scarce ersources(limited). Nobody can have everything they want. We make up the economy, always wanting more. Factors of Producion-Land, Labor, Capital, Entrepreneurship. Land-all the natural resources. Labor-skills and abilities (workers too). Capital-What we use making it the final product. Entrepreneurship-A risk taker. He brings the other three factors together in innovative ways. Opportunity Cost-The best alternative, foregoing something, choosing between 2 options, the thing I give up is the opportunity cost (Guns & Butter is about opportunity cost). The graph for the opportunity cost show this: the curve line of the graph is the production possibility curve, the points on the curve tells you that every resources is being used efficiently (factors of production). Point C (outside the curve line) economic growth, w/more resources to use, we get there w/technology. Point A (inside the curve line)is ressession, unemployment, undesirable. Adam Smith, market mechanism(is what it’s called today) invisible hand (goes w/market mechanism) what gets produce, it moves the factors of production/us. This is the fundamental of capitalistic system, and the essential feature of market mechanism is price signal. Example: Block Buster goes out of business, start downloading through netflix. Laissez faire-leave it alone (hands off, capitalistic society). How do we compete? Produce least cost method and produce. Who? For those who...
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...The concern of the relationship between international trade and the environment can date back to the United Nations (UN) Conference on the Human Environment in early 1970s (UN,1972). As the international trading activities increase in both frequency and magnitude, the relationship between world trade and environmental conservation becomes closer and closer. The extent of globalisation is now spreading across every parts of the world. At present, human is facing an important yet complicated problem climate change. In order to address this problem and promote sustainable development, the globalisation becomes a key focus. As one of the drivers of globalisation, international trade receives more public awareness than before. Nowadays, whether or not the trade-driven globalisation conflicts with preservation of the environment and natural resources environmental is a controversial topic (Heywood, 2014). However, in this essay I will argue that promoting globalisation through international trade creates both conflicts and opportunities to conservation of the environment and natural resources. From an economic point of view, both world trade and environmental protection are important because they are the essential for promoting sustainable development, due to this reason it is possible to reconcile their continued levels. Hence, addressing the conflicting aspects and maximising the opportunities between them are necessary. After discussing the relationships, I will also give the relevant...
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...PORTFOLIO MANAGEMENT M.COM 2(B) ASSIGNMENT ON STOCK EXCHANGE SUBMITTED TO: SIR MUZAMMAL SUBMITTED BY: AYESHA TALAT REG # 29 SABA AKHTAR REG # 40 ASMA JAVEED REG # 71 ZARWA NOOR REG# 72 UNIVERSITY OF CENTRAL PUNJAB Stock Exchange General History of Stock Exchanges In 11th century people of France were concerned with managing and regulating debts of agriculture communities on behalf of the bank.They could be called the first broker in history Bourse come from the Latin “bursa” meaning a bag.In 13th century Bruges, the sign of a purse hung on front of the house where merchants meet latter in 13th century commodity traders gathered inside the house of a man called Van der Burse.And after that they institutionalized that house and became Bruges Bourse .The idea spread quickly in neighbor countries. The Dutch later started joint stock company, which let share holders invest in business ventures and get a share of their profits or losses.In 1602, the Dutch East Indian Company issued the first shares on the Amsterdam Stock Exchange.It was the first company to issue Stocks and bonds.In 1688, the trading of stocks began on a stock exchange in London. It was the first stock exchange in history. A stock exchange is a form of exchange which provides services for stock brokers and traders to buy or sell stocks, bonds, and other securities.Stock exchanges also provide facilities for issue and redemption of securities and other financial...
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...Q1. What is ForeignDirect Investment ( FDI)? What are the Theories of FDI? What Are the pons & cons , Cost/ benefitr fro the cost country n home country? Answer: Foreign Direct Investment: FDI occurs when a frim invest directly in facilities to produce or market product in a foreign country. The Theories of FDI: Theroies of FDI may be classified under the following------ 1. Production or product Cycle Theory of Vernon 2. The theory of Exchange Rate on Imperfect Capital Market 3. The Internalisation Theory 4. The Eclectic Paradigm of Dunning Production or product Cycle Theory of Vernon Production or product theory developed by Vernob in 1966 was used to explain certain types of FDI. He believes that there are four stage of production cycle— * Innivation * Growth * Maturity * Decline. Vernon’s production life-cycle suggest that frims undertake FDI at particular stage in the life cycle of products they have developed or produced. However, Vernon’s theory does not adresss the issue of whether FDI is more efficient than exporting or licensing for expanding abroad. The theory of Exchange Rate on Imperfect Capital Market: This is another theory which tried to explain FDI. Initially the foreign exchange risk has been analyzed from the perspective of international trade. However, currency risk rate theory cannot explain simultaneous foreign direct investment between countries with different currencies. The sustainers argue that...
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...STRUCTURAL CHANGES IN INDIA’S FOREIGN TRADE T.P. Bhat November 2011 Institute for Studies in Industrial Development New Delhi A Study Prepared as a Part of a Research Programme STRUCTURAL CHANGES, INDUSTRY AND EMPLOYMENT IN THE INDIAN ECONOMY Macro‐economic Implications of Emerging Pattern Sponsored by Indian Council of Social Science Research (ICSSR) New Delhi Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Historical Backdrop Foreign Trade in 2nd and 3rd Plan Development of Complex Regime Episode of trade Liberalization Economic Growth and Policy Framework of Foreign Trade Foreign Trade Policy Reforms after 1991‐92 Service Sector and Reform Export‐Import Growth Scenario Commodity Composition of Export and Import Basket Factor Intensity Analysis of Exports Factor Intensity Analysis of Imports Structural Weakness of India’s Foreign Trade Stability of India’s Comparative Advantage Rise of Service Sector Exports Relationship Between Economic Growth and Export Growth Relationship Between Trade and Employment Can India Skip Industrialization Phase? Conclusions List of Tables 1 2 3 4 5 Indicators of Long‐Term Indian Economic Performance, 1950‐2010 (Average annual growth) India’s Exports, Export Growth and Share in GDP Trade and Capital Account Balances (Million $) Evolution of India’s Trade Balances (Rs...
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